Cisco announced its intent to acquire privately held Cariden Technologies, Inc., a Sunnyvale, Calif.-based supplier of network planning, design and traffic management solutions for telecommunications service providers.
With global service providers converging their Internet Protocol (IP) and optical networks to address exploding Internet and mobile traffic growth and complex traffic patterns, Cisco's acquisition of Cariden will allow providers to enhance the visibility, programmability and efficiency of their converged networks, while improving service velocity.
Cariden's capacity planning and management tools for IP/MPLS (Multi-Protocol Label Switching) networks, which have been deployed by many of the world's leading fixed and mobile network operators, will be integrated into Cisco's Service Provider Networking Group to enable multilayer modeling and optimization of optical transport and IP/MPLS networks.
Cariden's products and technology will advance Cisco's nLight technology for IP and optical convergence.
The acquisition also supports the company's Open Network Environment (ONE) strategy by providing sophisticated wide area networking (WAN) orchestration capabilities.
These capabilities will allow service providers to improve both the programmability of their networks and the utilization of existing network assets across the IP and optical transport layers.
"The Cariden acquisition reinforces Cisco's commitment to offering service providers the technologies they need to optimize and monetize their networks, and ultimately grow their businesses," said Surya Panditi, senior vice president and general manager, Cisco's Service Provider Networking Group. "Given the widespread convergence of IP and optical networks, Cariden's technology will help carriers more efficiently manage bandwidth, network traffic and intelligence. This acquisition signals the next phase in Cisco's packet and optical convergence strategy and further strengthens our ability to lead this market transition in networking."
The acquisition of Cariden exemplifies Cisco's build, buy, and partner innovation framework and is aligned to Cisco's strategic goals to develop and deliver innovative networking technologies and provide best-in-class solutions for customers, all while attracting and cultivating top talent.
Upon the close of the acquisition, Cariden employees will be integrated into Cisco's Service Provider Networking Group, reporting to Shailesh Shukla, vice president and general manager of the company's Software and Applications Group. Under the terms of the agreement, Cisco will pay approximately $141 million in cash and retention-based incentives in exchange for all shares of Cariden. The acquisition is subject to various standard closing conditions and is expected to be completed in the second quarter of Cisco's fiscal year 2013.
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